EX-99.1 2 umpq-20200630ex991earn.htm PRESS RELEASE ANNOUNCING SECOND QUARTER RESULTS Document

EXHIBIT 99.1 
umpqheadera011.jpg  

Contacts:
Ron FarnsworthDrew Anderson
EVP/Chief Financial OfficerSVP/Investor Relations Director
Umpqua Holdings CorporationUmpqua Holdings Corporation
503-727-4108503-727-4192
ronfarnsworth@umpquabank.comdrewanderson@umpquabank.com
 
UMPQUA REPORTS SECOND QUARTER 2020 RESULTS

Second quarter 2020 net income of $52.9 million, or $0.24 per common share
Deposit growth of $2.1 billion, or 9.4%; loan and lease growth of $1.4 billion, or 6.7%
Generated over 15,000 Paycheck Protection Program (PPP) loans for $2.0 billion
COVID-19 impacts on economic forecasts resulted in provision for credit losses of $87.1 million


PORTLAND, Ore. – July 22, 2020 – Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) reported net earnings of $52.9 million for the second quarter of 2020, compared to net loss of $1.9 billion for the first quarter of 2020 and net income of $111.8 million for the second quarter of 2019. Earnings per diluted common share were $0.24 for the second quarter of 2020, compared to a loss of $8.41 for the first quarter of 2020 and earnings of $0.51 for the second quarter of 2019.

"Umpqua’s second quarter results, particularly in light of the significant disruption due to the COVID-19 pandemic, are a testament to our associates’ extraordinary resilience and commitment to serving our customers and communities. During the quarter, as we ramped up our efforts to support small businesses across our footprint, we rapidly processed and funded more than 15,000 PPP loans with an average loan size of $134,000. In addition, our home lending department had a record-breaking quarter, generating more than $2.1 billion in production.” said Cort O’Haver, president and CEO of Umpqua Holdings Corporation. "We continue working with customers who qualify for payment deferrals as a result of COVID-19 impacts with a 5.7% deferral level that reflects the company's strong credit quality practices. I’m especially pleased with the reduction in our cost of interest bearing deposits and lower non-interest expenses, absent increased home lending commissions due to volume, as we operate in a low interest rate environment."

Ongoing impact of COVID-19 on our business operations:

Operations have been modified to comply with multiple state-level proclamations and CDC guidance and best practice; we continue to:
restrict all travel.
maintain a remote work program for associates other than store associates and small groups of other functions that cannot be completed remotely. About 90% of our non-store associates are operating remotely.
transitioned store operations to restrict lobby access and instructed customers to bank by appointment only which has allowed over 95% of stores on any given day to remain open throughout the crisis.
increased cleaning scope and frequency to our store locations and installed other protective devices for our associates.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 2
Mobile banking usage trends are up 21% and unique sessions are up 30% year over year in addition to an expected decline in store transactions of over 31%.
Continue to offer our Umpqua Go-To® application with over 63,000 customers enrolled. Go-To usage increased 48% from the prior quarter levels as customers used the platform as a safe and effective way of conducting banking.
We enhanced associate benefits, including:
supplemental front line associate pay.
pandemic pay bank for associates needing additional paid time off due to COVID-19 impacts.
flexible work rotations and remote work for higher-risk associates.
Active participant in PPP, including:
over 15,000 PPP loans produced.
$2.0 billion in total loans were funded.
average loan size was $134,000.
Addressing other customer needs during pandemic:
payment deferrals.
waiving deferral associated fees.
ATM fee waivers.
Enhanced community support:
announced a total of $3.0 million in combined grants and investments to organizations providing COVID-19 community relief and small business microloans.
initiated virtual volunteerism program.
activated an associate 3:1 giving match to donations.

Notable items that impacted the second quarter 2020 financial results included:

$87.1 million provision for credit losses reflecting the continued impacts of the COVID-19 global pandemic on economic forecasts, compared to a $118.1 million provision in the prior quarter, and a $19.4 million provision in the same period of the prior year.
$6.4 million loss on the fair value change of the MSR asset due to accelerated prepayments as a result of the lower interest rate environment compared to a $25.4 million loss in the prior quarter and a $17.8 million loss in the same period of the prior year.
$0.8 million loss related to the fair value of the debt capital market swap derivatives, compared to a loss of $14.3 million in the prior quarter and a loss of $4.0 million in the same period of the prior year.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 3
Second Quarter 2020 Highlights (compared to prior quarter):

Net interest income decreased by $6.0 million on a quarter to quarter basis primarily driven by lower average yields on loans and leases, partially offset by a lower cost of interest bearing deposits;
Provision for credit losses decreased by $31.0 million, although still elevated from historical levels reflecting the continued influence of the COVID-19 global pandemic on economic forecasts;
Net charge-offs decreased by twelve basis points to 0.29% of average loans and leases (annualized);
Non-interest income increased by $74.8 million, driven primarily by an increase in net mortgage banking revenue;
Non-interest expense decreased by $1.8 billion, driven by the $1.8 billion goodwill impairment that was recorded in the prior period. Absent the goodwill impairment charge, non-interest expense increased by $4.2 million from the prior quarter primarily due to strong mortgage production;
Non-performing assets to total assets decreased six basis points to 0.26% from 0.32%;
Estimated total risk-based capital ratio of 14.4% and estimated Tier 1 common to risk weighted assets ratio of 11.1%;
Filed a Form 8-K on June 17, 2020, announcing the shift in timing of a dividend declaration date from historical intra-quarter announcements to after quarterly earnings are finalized and applicable regulatory approval processes are complete.

Balance Sheet
Total consolidated assets were $29.6 billion as of June 30, 2020, compared to $27.5 billion as of March 31, 2020 and $28.0 billion as of June 30, 2019. Including secured off-balance sheet lines of credit, total available liquidity was $11.7 billion as of June 30, 2020, representing 39% of total assets and 47% of total deposits.
 
Gross loans and leases were $22.7 billion as of June 30, 2020, an increase of $1.4 billion relative to March 31, 2020. The increase in gross loans and leases is primarily due to the production of the PPP loans totaling $2.0 billion in the quarter. Please refer to the additional loan tables in the Q2 2020 Earnings Presentation for select underwriting characteristics of the loan portfolio and specific industry concentrations impacted by COVID-19.

Total deposits were $24.8 billion as of June 30, 2020, an increase of $2.1 billion from $22.7 billion as of March 31, 2020. This increase was attributable to growth in non-interest bearing demand deposits of $2.0 billion partially offset by a decline in time deposits of $612.0 million.
 
Net Interest Income
Net interest income was $212.5 million for the second quarter of 2020, down $6.0 million from the prior quarter. The decrease was primarily driven by lower average yields on loans and leases, partially offset by a lower cost of interest bearing deposits.

The Company's net interest margin was 3.09% for the second quarter of 2020, down 32 basis points from 3.41% for the first quarter of 2020 primarily driven by the decrease in short and long term interest rates that occurred in the prior quarter.

Credit Quality
The allowance for credit losses was $383.1 million, or 1.69% of loans and leases, as of June 30, 2020, which was up from $312.3 million, or 1.47% of loans and leases, as of March 31, 2020. The provision for credit losses was $87.1 million for the second quarter of 2020, a decrease of $31.0 million from the prior quarter level, although still elevated from historical levels reflecting the continued influence of the COVID-19 global pandemic on economic forecasts.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 4
Net charge-offs as a percentage of average loans and leases decreased by twelve basis points to 0.29% of average loans and leases (annualized). The decrease in net charge-offs for the quarter was primarily due to the COVID-19 related single charge-off to a regional air transportation lessor that occurred in the prior quarter. As of June 30, 2020, non-performing assets were 0.26% of total assets, compared to 0.32% as of March 31, 2020 and 0.28% as of June 30, 2019.

Current Expected Credit Loss (CECL)
As described in our first quarter 2020 quarterly report on Form 10-Q filed on May 7, 2020 ("Q1 2020 10-Q"), on January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"). In applying CECL, our financial results will be affected as soon as weak or deteriorating economic conditions are forecasted which alters our expectations for credit losses. In addition, due to the expansion of the time horizon over which we are required to estimate future credit losses under CECL, we may experience increased volatility in our future provisions for credit losses. When utilizing economic forecast models that factor in significant, negative COVID-19 impacts to the economy, we recorded significant provisions for credit losses in the first and second quarters of 2020 and may incur significant provisions for credit losses in future periods as well as actual or projected economic conditions deteriorate further.

Non-interest Income
Non-interest income was $115.5 million for the second quarter of 2020, up $74.8 million from the prior quarter driven primarily by the increase in net mortgage banking revenue as described below.

Revenue from the origination and sale of residential mortgages was $86.8 million for the second quarter of 2020, an increase of $47.4 million from the prior quarter. This increase reflects a sequential quarter increase of $677.9 million or 59% in for-sale mortgage origination volume and an increase of 132 basis points in the home lending gain on sale margin to 4.75% for the second quarter of 2020. Of the current quarter's mortgage production, 34% related to purchase activity, compared to 43% for the prior quarter and 70% for the same period of the prior year.

Non-interest Expense
Non-interest expense was $181.9 million for the second quarter of 2020, down $1.8 billion from the prior quarter level. This decrease was driven primarily by the $1.8 billion goodwill impairment that was recorded in the prior period. Due to the aforementioned strong mortgage production, expenses for our Home Lending Division were up $10.4 million compared to the prior quarter.

Goodwill
As described in our Q1 2020 10-Q, the Company completed the analysis of goodwill prior to filing the Q1 2020 10-Q with the Securities and Exchange Commission. The Company updated its goodwill assessment for the Wholesale Bank and Retail Bank reporting units as of March 31, 2020, due to events and circumstances indicating potential impairment. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Upon completing the quantitative impairment analysis, the Company recorded a goodwill impairment of $1.8 billion during the first quarter, which represented the entire amount of goodwill allocated to the Wholesale Bank and Retail Bank reporting units. The remaining goodwill of $2.7 million after the impairment relates to the Wealth Management reporting unit. The goodwill impairment was material to reported earnings in the first quarter, but was a non-cash charge and had no effect on the Company’s cash balances, liquidity or tangible equity. In addition, because goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company’s well-capitalized regulatory capital ratios were not impacted by the impairment.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 5
Capital
As of June 30, 2020, the Company's tangible book value per common share1 was $11.44, compared to $11.30 in the prior quarter and $10.97 in the same period of the prior year.

The Company's estimated total risk-based capital ratio was 14.4% and its estimated Tier 1 common to risk weighted
assets ratio was 11.1% as of June 30, 2020. The Company remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of June 30, 2020 are estimates, pending completion and filing of the Company's regulatory reports.


Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

Management believes tangible common equity and the tangible common equity ratio are useful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs).  The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.
 
The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
 
(In thousands, except per share data)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019
Total shareholders' equity$2,538,339  $2,507,611  $4,313,915  $4,289,516  $4,228,507  
Subtract:   
Goodwill 2,715  2,715  1,787,651  1,787,651  1,787,651  
Other intangible assets, net15,853  17,099  18,346  19,750  21,155  
Tangible common shareholders' equity$2,519,771  $2,487,797  $2,507,918  $2,482,115  $2,419,701  
Total assets$29,645,248  $27,540,382  $28,846,809  $28,930,855  $27,986,075  
Subtract:   
Goodwill2,715  2,715  1,787,651  1,787,651  1,787,651  
Other intangible assets, net15,853  17,099  18,346  19,750  21,155  
Tangible assets$29,626,680  $27,520,568  $27,040,812  $27,123,454  $26,177,269  
Common shares outstanding at period end220,219  220,175  220,229  220,212  220,499  
Total shareholders' equity to total assets ratio8.56 %9.11 %14.95 %14.83 %15.11 %
Tangible common equity ratio8.51 %9.04 %9.27 %9.15 %9.24 %
Book value per common share$11.53  $11.39  $19.59  $19.48  $19.18  
Tangible book value per common share$11.44  $11.30  $11.39  $11.27  $10.97  

1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided
under the heading Non-GAAP Financial Measures.

Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 6
About Umpqua Holdings Corporation
Umpqua Holdings Corporation (NASDAQ: UMPQ) is the parent company of Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions. Umpqua Bank has locations across Oregon, Washington, California, Idaho and Nevada. Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which has locations in Umpqua Bank stores and in dedicated offices in Oregon. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit umpquabank.com.
 
Earnings Conference Call Information
The Company will host its second quarter 2020 earnings conference call on July 23, 2020, at 10:00 a.m. PT (1:00 p.m. ET). During the call, the Company will provide an update on recent activities and discuss its second quarter 2020 financial results. There will be a live question-and-answer session following the presentation. To join the call, please dial (866) 440-7407 ten minutes prior to the start time and enter conference ID: 8066667. A re-broadcast will be available approximately two hours after the call by dialing (855) 859-2056 and entering conference ID 8066667. The earnings conference call will also be available as an audio cast, which can be accessed on the Company's investor relations page at umpquabank.com.
 
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In this press release we make forward-looking statements about the projected impact on our business operations of the COVID-19 global pandemic and future credit losses under CECL. Risks that could cause results to differ from forward-looking statements we make are set forth in our filings with the SEC and include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and any slowdown in economic growth particularly in the western United States; the effect of the COVID-19 pandemic, including on our credit quality, deferral programs, and business operations, as well as its impact on general economic and financial market conditions; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that exceeds current consensus estimates; our ability to effectively manage problem credits; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; and changes in laws or regulations. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 7

Umpqua Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
 Quarter Ended% Change
(In thousands, except per share data)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq.
Quarter
Year over Year
Interest income:     
Loans and leases$235,174  $245,993  $262,109  $266,111  $264,110  (4)%(11)%
Interest and dividends on investments: 
Taxable9,015  16,605  13,361  12,546  10,287  (46)%(12)%
Exempt from federal income tax1,520  1,562  1,638  1,727  1,921  (3)%(21)%
Dividends568  678  579  599  574  (16)%(1)%
Temporary investments and interest bearing deposits403  3,331  4,343  4,204  4,708  (88)%(91)%
Total interest income246,680  268,169  282,030  285,187  281,600  (8)%(12)%
Interest expense:     
Deposits26,222  40,290  44,380  45,876  43,591  (35)%(40)%
Securities sold under agreement to repurchase and federal funds purchased194  395  431  448  403  (51)%(52)%
Borrowings3,839  4,046  5,080  4,238  4,563  (5)%(16)%
Junior subordinated debentures3,922  4,903  5,325  5,652  5,881  (20)%(33)%
Total interest expense34,177  49,634  55,216  56,214  54,438  (31)%(37)%
Net interest income212,503  218,535  226,814  228,973  227,162  (3)%(6)%
Provision for credit losses87,085  118,085  16,252  23,227  19,352  (26)%350 %
Non-interest income:     
Service charges on deposits11,831  15,638  16,656  16,627  15,953  (24)%(26)%
Brokerage revenue3,805  4,015  4,027  4,060  3,980  (5)%(4)%
Residential mortgage banking revenue, net83,877  17,540  34,050  47,000  9,529  378 %780 %
Gain (loss) on sale of debt securities, net323  (133)  —  (7,186) (343)%(104)%
Gain (loss) on equity securities, net240  814  (84) 257  82,607  (71)%(100)%
Gain on loan and lease sales, net1,074  1,167  4,603  1,762  3,333  (8)%(68)%
BOLI income2,116  2,129  2,078  2,067  2,093  (1)%%
Other income (expense)12,214  (525) 22,417  16,739  11,514  nm%
Total non-interest income115,480  40,645  83,749  88,512  121,823  184 %(5)%
Non-interest expense:     
Salaries and employee benefits116,676  109,774  108,847  106,819  104,049  %12 %
Occupancy and equipment, net36,171  37,001  36,513  35,446  36,032  (2)%%
Intangible amortization1,246  1,247  1,404  1,405  1,405  %(11)%
FDIC assessments3,971  2,542  2,867  2,587  2,837  56 %40 %
Goodwill impairment—  1,784,936  —  —  —  (100)%nm
Other expenses23,846  27,158  33,812  37,333  36,092  (12)%(34)%
Total non-interest expense181,910  1,962,658  183,443  183,590  180,415  (91)%%
Income (loss) before provision for income taxes58,988  (1,821,563) 110,868  110,668  149,218  (103)%(60)%
Provision for income taxes6,062  30,384  27,118  26,166  37,408  (80)%(84)%
Net income (loss) $52,926  $(1,851,947) $83,750  $84,502  $111,810  (103)%(53)%
Weighted average basic shares outstanding220,210  220,216  220,222  220,285  220,487   %%
Weighted average diluted shares outstanding220,320  220,216  220,671  220,583  220,719   % %
Earnings (loss) per common share – basic$0.24  $(8.41) $0.38  $0.38  $0.51  (103)%(53)%
Earnings (loss) per common share – diluted$0.24  $(8.41) $0.38  $0.38  $0.51  (103)%(53)%
nm = not meaningful     




Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 8

Umpqua Holdings Corporation
Consolidated Statements of Income
(Unaudited)
 Six Months Ended% Change
(In thousands, except per share data)Jun 30, 2020Jun 30, 2019Year
over Year
Interest income:   
Loans and leases$481,167  $522,857  (8)%
Interest and dividends on investments:
Taxable25,620  30,243  (15)%
Exempt from federal income tax3,082  4,035  (24)%
Dividends1,246  1,091  14 %
Temporary investments and interest bearing deposits3,734  5,633  (34)%
Total interest income514,849  563,859  (9)%
Interest expense: 
Deposits66,512  77,685  (14)%
Securities sold under agreement to repurchase and federal funds purchased589  1,213  (51)%
Borrowings7,885  8,246  (4)%
Junior subordinated debentures8,825  11,868  (26)%
Total interest expense83,811  99,012  (15)%
Net interest income431,038  464,847  (7)%
Provision for credit losses205,170  33,036  521 %
Non-interest income: 
Service charges on deposits27,469  31,231  (12)%
Brokerage revenue7,820  7,790  %
Residential mortgage banking revenue, net101,417  20,760  389 %
Gain (loss) on sale of debt securities, net190  (7,186) (103)%
Gain on equity securities, net1,054  83,302  (99)%
Gain on loan and lease sales, net2,241  4,102  (45)%
BOLI income4,245  4,261  %
Other income11,689  23,303  (50)%
Total non-interest income156,125  167,563  (7)%
Non-interest expense: 
Salaries and employee benefits226,450  204,707  11 %
Occupancy and equipment, net73,172  72,277  %
Intangible amortization2,493  2,809  (11)%
FDIC assessments6,513  5,779  13 %
Goodwill impairment1,784,936  —  nm
Other expenses51,004  66,435  (23)%
Total non-interest expense2,144,568  352,007  509 %
(Loss) income before provision for income taxes(1,762,575) 247,367  (813)%
Provision for income taxes36,446  61,524  (41)%
Net (loss) income$(1,799,021) $185,843  (1,068)%
Weighted average basic shares outstanding220,213  220,427  %
Weighted average diluted shares outstanding220,213  220,692   %
(Loss) earnings per common share – basic$(8.17) $0.84  (1,073)%
(Loss) earnings per common share – diluted$(8.17) $0.84  (1,073)%
nm = not meaningful   



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 9

Umpqua Holdings Corporation
Consolidated Balance Sheets
(Unaudited)
    % Change
(In thousands, except per share data)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq.
Quarter
Year
over
Year
Assets:     
Cash and due from banks$410,769  $406,426  $382,598  $433,620  $342,508  %20 %
Interest bearing cash and temporary investments1,853,505  1,251,290  980,158  757,824  691,283  48 %168 %
Investment securities:     
Equity and other, at fair value81,958  80,797  80,165  64,764  66,358  %24 %
Available for sale, at fair value2,865,690  2,890,475  2,814,682  2,842,076  2,698,398  (1)%%
Held to maturity, at amortized cost3,143  3,200  3,260  3,320  3,416  (2)%(8)%
Loans held for sale, at fair value605,399  481,541  513,431  355,022  356,645  26  %70 %
Loans and leases22,671,455  21,251,478  21,195,684  21,520,794  20,953,371  %%
Allowance for credit losses on loans and leases(356,745) (291,420) (157,629) (156,288) (151,069) 22 %136 %
Net loans and leases22,314,710  20,960,058  21,038,055  21,364,506  20,802,302  %%
Restricted equity securities54,062  58,062  46,463  54,463  43,063  (7)%26 %
Premises and equipment, net192,041  195,390  201,460  203,391  210,285  (2)%(9)%
Operating lease right-of-use assets111,487  115,485  110,718  108,187  112,752  (3)%(1)%
Goodwill2,715  2,715  1,787,651  1,787,651  1,787,651  %(100)%
Other intangible assets, net15,853  17,099  18,346  19,750  21,155  (7)%(25)%
Residential mortgage servicing rights, at fair value96,356  94,346  115,010  151,383  139,780  %(31)%
Bank owned life insurance324,873  322,717  320,611  318,533  316,435  %%
Other assets712,687  660,781  434,201  466,365  394,044  %81 %
Total assets$29,645,248  $27,540,382  $28,846,809  $28,930,855  $27,986,075  %%
Liabilities:     
Deposits$24,844,378  $22,699,375  $22,481,504  $22,434,734  $21,819,013  %14 %
Securities sold under agreements to repurchase398,414  346,245  311,308  296,717  308,052  15 %29 %
Borrowings1,096,559  1,196,597  906,635  1,106,674  821,712  (8)%33 %
Junior subordinated debentures, at fair value232,936  195,521  274,812  267,798  277,028  19 %(16)%
Junior subordinated debentures, at amortized cost88,382  88,439  88,496  88,553  88,610   %%
Operating lease liabilities119,885  123,962  119,429  116,924  121,742  (3)%(2)%
Deferred tax liability, net21,439  51,061  52,928  67,055  57,757  (58)%(63)%
Other liabilities304,916  331,571  297,782  262,884  263,654  (8) %16 %
Total liabilities27,106,909  25,032,771  24,532,894  24,641,339  23,757,568  %14 %
Shareholders' equity:     
Common stock3,510,145  3,507,680  3,514,000  3,511,493  3,514,391   %%
(Accumulated deficit) retained earnings(1,115,414) (1,168,340) 770,366  733,059  695,003  (5)%(260)%
Accumulated other comprehensive income143,608  168,271  29,549  44,964  19,113  (15)%651 %
Total shareholders' equity2,538,339  2,507,611  4,313,915  4,289,516  4,228,507  %(40)%
Total liabilities and shareholders' equity$29,645,248  $27,540,382  $28,846,809  $28,930,855  $27,986,075  %%
Common shares outstanding at period end220,219  220,175  220,229  220,212  220,499   % %
Book value per common share$11.53  $11.39  $19.59  $19.48  $19.18  %(40)%
Tangible book value per common share$11.44  $11.30  $11.39  $11.27  $10.97  %%
Tangible equity - common$2,519,771  $2,487,797  $2,507,918  $2,482,115  $2,419,701  %%
Tangible common equity to tangible assets8.51 %9.04 %9.27 %9.15 %9.24 %(0.53)(0.73)



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 10

Umpqua Holdings Corporation
Loan and Lease Portfolio
(Unaudited)
Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019% Change
 (Dollars in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:   
Non-owner occupied term, net$3,589,484  $3,613,420  $3,545,566  $3,495,555  $3,537,084  (1)%%
Owner occupied term, net2,459,954  2,472,187  2,496,088  2,566,299  2,396,674  %%
Multifamily, net3,466,829  3,464,217  3,514,774  3,479,986  3,341,547  %%
Construction & development, net662,703  667,975  678,740  771,214  732,932  (1)%(10)%
Residential development, net164,180  187,594  189,010  191,500  199,421  (12)%(18)%
Commercial:
Term, net (1)
4,265,092  2,317,573  2,232,817  2,310,759  2,271,346  84 %88 %
Lines of credit & other, net940,443  1,208,051  1,212,393  1,254,755  1,280,587  (22)%(27)%
Leases & equipment finance, net1,522,369  1,492,762  1,465,489  1,485,753  1,449,579  %%
Residential:
Mortgage, net4,056,588  4,193,908  4,215,424  4,245,674  3,995,643  (3)%%
Home equity loans & lines, net1,189,428  1,249,152  1,237,512  1,224,578  1,215,215  (5)%(2)%
   Consumer & other, net354,385  384,639  407,871  494,721  533,343  (8)%(34)%
Total loans, net of deferred fees and costs$22,671,455  $21,251,478  $21,195,684  $21,520,794  $20,953,371  %%
(1)The Bank participates in the Payroll Protection Program ("PPP") to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include 15,000 PPP loans, totaling $1.9 billion, net of deferred fees and costs.

Loan and leases mix:
Commercial real estate:
   Non-owner occupied term, net16 %17 %17 %16 %17 %
   Owner occupied term, net11 %12 %12 %12 %11 %
   Multifamily, net15 %16 %16 %16 %16 %
Construction & development, net%%%%%
Residential development, net%%%%%
Commercial: 
Term, net19 %11 %10 %11 %11 %
Lines of credit & other, net%%%%%
Leases & equipment finance, net%%%%%
Residential: 
Mortgage, net18 %20 %20 %20 %19 %
Home equity loans & lines, net%%%%%
   Consumer & other, net%%%%%
Total100 %100 %100 %100 %100 %




Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 11

Umpqua Holdings Corporation
Deposits by Type/Core Deposits
(Unaudited)
Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019% Change
 (Dollars in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$9,172,210  $7,169,907  $6,913,375  $7,123,180  $6,771,087  28 %35 %
Demand, interest bearing2,813,722  2,482,908  2,524,534  2,406,404  2,355,473  13 %19 %
Money market7,262,777  7,082,011  6,930,815  6,646,383  6,789,036  %%
Savings1,730,051  1,486,909  1,471,475  1,469,302  1,446,332  16 %20 %
Time3,865,618  4,477,640  4,641,305  4,789,465  4,457,085  (14)%(13)%
Total$24,844,378  $22,699,375  $22,481,504  $22,434,734  $21,819,013  %14 %
Total core deposits (1)
$22,095,314  $19,434,228  $19,061,058  $18,845,328  $18,529,797  14 %19 %
Deposit mix:
Demand, non-interest bearing37 %32 %31 %32 %31 %
Demand, interest bearing11 %11 %11 %11 %11 %
Money market29 %31 %31 %30 %31 %
Savings%%%%%
Time16 %19 %21 %21 %20 %
Total100 %100 %100 %100 %100 %
Number of open accounts:      
Demand, non-interest bearing423,456  416,270  415,254  413,633  409,235  
Demand, interest bearing74,813  75,514  75,900  76,390  76,686  
Money market59,445  59,203  58,888  58,796  58,158  
Savings161,710  159,870  159,948  160,673  160,708  
Time57,501  62,515  62,952  62,122  60,571  
Total776,925  773,372  772,942  771,614  765,358  
Average balance per account:      
Demand, non-interest bearing$21.7  $17.2  $16.6  $17.2  $16.5    
Demand, interest bearing37.6  32.9  33.3  31.5  30.7    
Money market122.2  119.6  117.7  113.0  116.7    
Savings10.7  9.3  9.2  9.1  9.0    
Time67.2  71.6  73.7  77.1  73.6    
Total$32.0  $29.4  $29.1  $29.1  $28.5    
 
(1) Core deposits are defined as total deposits less time deposits greater than $100,000.




Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 12

 
Umpqua Holdings Corporation
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq. QuarterYear over Year
Non-performing assets:     
Loans and leases on non-accrual status$32,412  $39,128  $26,244  $31,636  $35,022  (17)%(7)%
Loans and leases past due 90+ days and accruing (1)
42,273  47,185  37,969  35,745  35,700  (10)%18 %
Total non-performing loans and leases74,685  86,313  64,213  67,381  70,722  (13)%%
Other real estate owned2,578  3,020  3,295  4,026  8,423  (15)%(69)%
Total non-performing assets$77,263  $89,333  $67,508  $71,407  $79,145  (14)%(2)%
Performing restructured loans and leases$15,032  $20,541  $18,576  $14,309  $15,267  (27)%(2)%
Loans and leases past due 31-89 days$41,683  $59,962  $41,882  $44,390  $40,619  (30)%%
Loans and leases past due 31-89 days to total loans and leases0.18 %0.28 %0.20 %0.21 %0.19 %  
Non-performing loans and leases to total loans and leases (1)
0.33 %0.41 %0.30 %0.31 %0.34 %  
Non-performing assets to total assets(1)
0.26 %0.32 %0.23 %0.25 %0.28 %  

(1)Excludes non-performing mortgage loans guaranteed by Ginnie Mae, which Umpqua has the unilateral right to repurchase but has not done so, totaling $2.6 million, $5.3 million, $4.3 million, $5.2 million, and $5.4 million at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 13
Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Three Month Ended% Change
(Dollars in thousands)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$291,420  $157,629  $156,288  $151,069  $144,872  85 %101 %
Impact of adoption of CECL—  49,999  —  —  —  (100)%nm
Adjusted balance, beginning of period291,420  207,628  156,288  151,069  144,872  40 %101 %
Provision for credit losses on loans and leases (1)
81,484  105,502  16,252  23,227  19,352  (23)%321 %
Charge-offs(19,453) (24,455) (18,734) (23,112) (16,707) (20)%16 %
Recoveries3,294  2,745  3,823  5,104  3,552  20 %(7)%
Net charge-offs(16,159) (21,710) (14,911) (18,008) (13,155) (26)%23 %
 Balance, end of period$356,745  $291,420  $157,629  $156,288  $151,069  22 %136 %
Reserve for unfunded commitments
Balance, beginning of period$20,927  $5,106  $5,085  $4,857  $4,654  310 %350 %
Impact of adoption of CECL—  3,238  —  —  —  (100)%nm
Adjusted balance, beginning of period20,927  8,344  5,085  4,857  4,654  151 %350 %
Provision for credit losses on unfunded commitments (1)
5,441  12,583  21  228  203  (57)%nm
Balance, end of period$26,368  $20,927  $5,106  $5,085  $4,857  26 %443 %
Total Allowance for credit losses (ACL)$383,113  $312,347  $162,735  $161,373  $155,926  23 %146 %
Net charge-offs to average loans and leases (annualized)0.29 %0.41 %0.28 %0.34 %0.26 %
Recoveries to gross charge-offs16.93 %11.22 %20.41 %22.08 %21.26 %
ACLLL to loans and leases1.57 %1.37 %0.74 %0.73 %0.72 %
ACL to loans and leases1.69 %1.47 %0.77 %0.75 %0.74 %
nm = not meaningful
(1) The total provision for credit losses as disclosed on the income statement includes an additional $160,000 in provision related to accrued interest on loans deferred due to COVID-19, which is not included in the table above.




Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 14

Umpqua Holdings Corporation
Credit Quality – Allowance for Credit Losses
(Unaudited)
Six Months Ended% Change
(Dollars in thousands)Jun 30, 2020Jun 30, 2019Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$157,629  $144,871  %
Impact of adoption of CECL49,999  —  nm
Adjusted balance, beginning of period207,628  144,871  43 %
Provision for credit losses on loans and leases (1)
186,986  33,036  466 %
Charge-offs(43,908) (33,859) 30 %
Recoveries6,039  7,021  (14)%
Net charge-offs(37,869) (26,838) 41 %
Balance, end of period$356,745  $151,069  136 %
Reserve for unfunded commitments
Balance, beginning of period$5,106  $4,523  13 %
Impact of adoption of CECL3,238  —  nm
Adjusted balance, beginning of period8,344  4,523  84 %
Provision for credit losses on unfunded commitments (1)
18,024  334  nm
Balance, end of period$26,368  $4,857  443 %
Total Allowance for credit losses (ACL)$383,113  $155,926  146 %
Net charge-offs to average loans and leases (annualized)0.35 %0.26 %
Recoveries to gross charge-offs13.75 %20.74 %
nm = not meaningful
(1) The total provision for credit losses as disclosed on the income statement includes an additional $160,000 in provision related to accrued interest on loans deferred due to COVID-19, not included in the table above.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 15

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
 Quarter Ended% Change
 Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq. QuarterYear
over
Year
Average Rates:     
Yield on loans held for sale3.77 %4.20 %4.25 %4.82 %5.03 %(0.43) (1.26) 
Yield on loans and leases4.11 %4.58 %4.80 %4.93 %5.07 %(0.47) (0.96) 
Yield on taxable investments1.38 %2.50 %2.05 %1.99 %1.62 %(1.12) (0.24) 
Yield on tax-exempt investments (1)
3.17 %3.14 %3.23 %3.30 %3.42 %0.03  (0.25) 
Yield on interest bearing cash and temporary investments0.10 %1.23 %1.65 %2.20 %2.41 %(1.13) (2.31) 
Total yield on earning assets (1)
3.59 %4.19 %4.36 %4.52 %4.59 %(0.60) (1.00) 
Cost of interest bearing deposits0.67 %1.03 %1.13 %1.19 %1.16 %(0.36) (0.49) 
Cost of securities sold under agreements   
to repurchase and fed funds purchased0.21 %0.47 %0.56 %0.57 %0.55 %(0.26) (0.34) 
Cost of borrowings1.33 %1.79 %1.96 %1.95 %2.03 %(0.46) (0.70) 
Cost of junior subordinated debentures5.55 %5.45 %5.92 %6.14 %6.17 %0.10  (0.62) 
Total cost of interest bearing liabilities0.78 %1.15 %1.27 %1.33 %1.31 %(0.37) (0.53) 
Net interest spread (1)
2.81 %3.04 %3.09 %3.19 %3.28 %(0.23) (0.47) 
Net interest margin (1)
3.09 %3.41 %3.51 %3.63 %3.70 %(0.32) (0.61) 
Performance Ratios:   
Return on average assets0.73 %(25.82)%1.15 %1.18 %1.62 %26.55  (0.89) 
Return on average tangible assets0.73 %(27.53)%1.22 %1.26 %1.73 %28.26  (1.00) 
Return on average common equity8.46 %(174.94)%7.70 %7.87 %10.80 %183.40  (2.34) 
Return on average tangible common equity8.53 %(301.30)%13.24 %13.67 %19.14 %309.83  (10.61) 
Efficiency ratio – Consolidated55.40 %756.29 %59.00 %57.76 %51.64 %(700.89) 3.76  
Efficiency ratio – Bank54.17 %752.92 %57.56 %56.22 %50.16 %(698.75) 4.01  

(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 16

Umpqua Holdings Corporation
Selected Ratios
(Unaudited)
 Six Months Ended% Change
 Jun 30, 2020Jun 30, 2019Year over Year
Average Rates:   
Yield on loans held for sale3.94 %5.41 %(1.47) 
Yield on loans and leases4.33 %5.07 %(0.74) 
Yield on taxable investments1.94 %2.30 %(0.36) 
Yield on tax-exempt investments (1)
3.15 %3.51 %(0.36) 
Yield on interest bearing cash and temporary investments0.56 %2.42 %(1.86) 
Total yield on earning assets (1)
3.88 %4.69 %(0.81) 
Cost of interest bearing deposits0.85 %1.07 %(0.22) 
Cost of securities sold under agreements  
to repurchase and fed funds purchased0.33 %0.74 %(0.41) 
Cost of borrowings1.53 %1.96 %(0.43) 
Cost of junior subordinated debentures5.49 %6.20 %(0.71) 
Total cost of interest bearing liabilities0.96 %1.23 %(0.27) 
Net interest spread (1)
2.92 %3.46 %(0.54) 
Net interest margin (1)
3.25 %3.86 %(0.61) 
Performance Ratios:  
Return on average assets(12.49)%1.37 %(13.86) 
Return on average tangible assets(12.89)%1.47 %(14.36) 
Return on average common equity(106.99)%9.09 %(116.08) 
Return on average tangible common equity(145.65)%16.21 %(161.86) 
Efficiency ratio – Consolidated364.82 %55.58 %309.24  
Efficiency ratio – Bank363.13 %53.94 %309.19  

(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.


Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 17

Umpqua Holdings Corporation
Average Balances
(Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq. QuarterYear over Year
Temporary investments and interest bearing cash$1,563,753  $1,084,854  $1,045,975  $759,416  $783,703  44 %100 %
Investment securities, taxable2,777,154  2,760,461  2,719,089  2,648,092  2,683,472  %%
Investment securities, tax-exempt235,934  241,105  244,895  252,765  271,633  (2)%(13)%
Loans held for sale577,773  406,434  415,169  328,155  264,445  42 %118 %
Loans and leases22,428,142  21,196,989  21,379,239  21,170,915  20,605,963  %%
Total interest earning assets27,582,756  25,689,843  25,804,367  25,159,343  24,609,216  %12 %
Goodwill and other intangible assets, net19,253  1,785,608  1,806,791  1,808,191  1,809,583  (99) %(99) %
Total assets29,066,775  28,844,773  28,981,387  28,356,982  27,709,310  %%
Non-interest bearing demand deposits8,484,684  6,880,457  7,037,320  6,880,093  6,556,090  23 %29 %
Interest bearing deposits15,803,595  15,695,309  15,550,483  15,289,464  15,069,198  %%
Total deposits24,288,279  22,575,766  22,587,803  22,169,557  21,625,288  %12 %
Interest bearing liabilities17,625,888  17,301,712  17,237,770  16,827,917  16,646,949  %%
Shareholders' equity - common2,514,754  4,257,711  4,317,277  4,260,810  4,153,175  (41)%(39)%
Tangible common equity (1)
2,495,501  2,472,103  2,510,486  2,452,619  2,343,592  %%

Umpqua Holdings Corporation
Average Balances
(Unaudited)
 Six Months Ended% Change
(Dollars in thousands)Jun 30, 2020Jun 30, 2019Year over Year
Temporary investments and interest bearing cash$1,325,627  $470,266  182 %
Investment securities, taxable2,768,853  2,720,353  %
Investment securities, tax-exempt238,505  279,456  (15)%
Loans held for sale492,577  226,263  118 %
Loans and leases21,815,966  20,498,075  %
Total interest earning assets26,641,528  24,194,413  10 %
Goodwill and other intangible assets, net897,551  1,810,291  (50) %
Total assets28,956,388  27,262,945  %
Non-interest bearing demand deposits7,687,002  6,530,992  18  %
Interest bearing deposits15,749,751  14,688,875  %
Total deposits23,436,753  21,219,867  10 %
Interest bearing liabilities17,464,696  16,254,933  %
Shareholders’ equity - common3,381,417  4,122,346  (18)%
Tangible common equity (1)
2,483,866  2,312,055  %
(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders' equity less average goodwill and other intangible assets, net (excluding MSRs).




Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 18

Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
Quarter Ended
June 30, 2020March 31, 2020June 30, 2019
 (Dollars in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$577,773  $5,443  3.77 %$406,434  $4,264  4.20 %$264,445  $3,326  5.03 %
Loans and leases (1)22,428,142  229,731  4.11 %21,196,989  241,729  4.58 %20,605,963  260,784  5.07 %
Taxable securities2,777,154  9,583  1.38 %2,760,461  17,283  2.50 %2,683,472  10,861  1.62 %
Non-taxable securities (2)235,934  1,868  3.17 %241,105  1,894  3.14 %271,633  2,325  3.42 %
Temporary investments and interest-bearing cash1,563,753  403  0.10 %1,084,854  3,331  1.23 %783,703  4,708  2.41 %
Total interest-earning assets27,582,756  $247,028  3.59 %25,689,843  $268,501  4.19 %24,609,216  $282,004  4.59 %
Other assets1,484,019  3,154,930  3,100,094  
Total assets$29,066,775  $28,844,773  $27,709,310  
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$2,649,331  $1,148  0.17 %$2,471,556  $3,543  0.58 %$2,332,535  $2,798  0.48 %
Money market deposits7,275,041  4,037  0.22 %7,107,626  11,759  0.66 %6,747,290  15,351  0.91 %
Savings deposits1,628,276  198  0.05 %1,485,171  241  0.07 %1,454,908  410  0.11 %
Time deposits4,250,947  20,839  1.97 %4,630,956  24,747  2.15 %4,534,465  25,032  2.21 %
Total interest-bearing deposits15,803,595  26,222  0.67 %15,695,309  40,290  1.03 %15,069,198  43,591  1.16 %
Repurchase agreements and federal funds purchased375,098  194  0.21 %337,796  395  0.47 %292,057  403  0.55 %
Borrowings1,163,065  3,839  1.33 %906,624  4,046  1.79 %903,164  4,563  2.03 %
Junior subordinated debentures284,130  3,922  5.55 %361,983  4,903  5.45 %382,530  5,881  6.17 %
Total interest-bearing liabilities17,625,888  $34,177  0.78 %17,301,712  $49,634  1.15 %16,646,949  $54,438  1.31 %
Non-interest-bearing deposits8,484,684  6,880,457  6,556,090  
Other liabilities441,449  404,893  353,096  
Total liabilities26,552,021  24,587,062  23,556,135  
Common equity2,514,754  4,257,711  4,153,175  
Total liabilities and shareholders' equity$29,066,775  $28,844,773  $27,709,310  
NET INTEREST INCOME$212,851  $218,867  $227,566  
NET INTEREST SPREAD2.81 %3.04 %3.28 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)3.09 %3.41 %3.70 %
(1)Non-accrual loans and leases are included in the average balance.   
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $348,000 for the three months ended June 30, 2020, as compared to $332,000 for March 31, 2020 and $404,000 for June 30, 2019. 



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 19

Umpqua Holdings Corporation
Average Rates and Balances
(Unaudited)
(dollars in thousands)Six Months Ended
 June 30, 2020June 30, 2019
 Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$492,577  $9,707  3.94 %$226,263  $6,116  5.41 %
Loans and leases (1)21,815,966  471,460  4.33 %20,498,075  516,741  5.07 %
Taxable securities2,768,853  26,866  1.94 %2,720,353  31,334  2.30 %
Non-taxable securities (2)238,505  3,763  3.15 %279,456  4,905  3.51 %
Temporary investments and interest-bearing cash1,325,627  3,734  0.56 %470,266  5,633  2.42 %
Total interest-earning assets26,641,528  $515,530  3.88 %24,194,413  $564,729  4.69 %
Other assets2,314,860  3,068,532  
Total assets$28,956,388  $27,262,945  
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$2,560,935  $4,691  0.37 %$2,326,162  $5,438  0.47 %
Money market deposits7,191,796  15,796  0.44 %6,570,488  26,368  0.81 %
Savings deposits1,557,118  439  0.06 %1,471,626  680  0.09 %
Time deposits4,439,902  45,586  2.06 %4,320,599  45,199  2.11 %
Total interest-bearing deposits15,749,751  66,512  0.85 %14,688,875  77,685  1.07 %
Repurchase agreements and federal funds purchased356,550  589  0.33 %331,477  1,213  0.74 %
Borrowings1,035,553  7,885  1.53 %848,783  8,246  1.96 %
Junior subordinated debentures322,842  8,825  5.49 %385,798  11,868  6.20 %
Total interest-bearing liabilities17,464,696  $83,811  0.96 %16,254,933  $99,012  1.23 %
Non-interest-bearing deposits7,687,002  6,530,992  
Other liabilities423,273  354,674  
Total liabilities25,574,971  23,140,599  
Common equity3,381,417  4,122,346  
Total liabilities and shareholders' equity$28,956,388  $27,262,945  
NET INTEREST INCOME$431,719  $465,717  
NET INTEREST SPREAD2.92 %3.46 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)  3.25 %  3.86 %
(1)Non-accrual loans and leases are included in the average balance.   
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $681,000 for the six months ended June 30, 2020 as compared to $870,000 for the same period in 2019. 



Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 20


Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
 Quarter Ended% Change
(Dollars in thousands)Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Seq. QuarterYear
over Year
Residential mortgage banking revenue:   
Origination and sale$86,781  $39,347  $35,438  $31,432  $23,151  121 %275 %
Servicing8,533  8,880  8,981  11,358  11,036  (4)%(23)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(5,042) (5,329) (5,237) (6,835) (6,905) (5)%(27)%
Changes due to valuation inputs or assumptions(6,395) (25,358) (5,132) 11,045  (17,753) (75)%(64)%
Total$83,877  $17,540  $34,050  $47,000  $9,529  378 %780 %
Closed loan volume:
Portfolio$276,247  $252,329  $335,511  $611,022  $481,878  %(43)%
For-sale1,826,095  1,148,184  1,060,016  844,442  698,150  59 %162 %
Total$2,102,342  $1,400,513  $1,395,527  $1,455,464  $1,180,028  50 %78 %
Gain on sale margin:
Based on for-sale volume4.75 %3.43 %3.34 %3.72 %3.32 %1.32  1.43  
Residential mortgage servicing rights:     
Balance, beginning of period$94,346  $115,010  $151,383  $139,780  $158,946  (18)%(41)%
Additions for new MSR capitalized13,447  10,023  8,397  7,393  5,492  34 %145 %
Sale of MSR assets—  —  (34,401) —  —  %%
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(5,042) (5,329) (5,237) (6,835) (6,905) (5)%(27)%
Changes due to valuation inputs or assumptions(6,395) (25,358) (5,132) 11,045  (17,753) (75)%(64)%
Balance, end of period$96,356  $94,346  $115,010  $151,383  $139,780  %(31)%
Residential mortgage loans serviced for others$12,746,125  $12,533,045  $12,276,943  $15,707,519  $15,796,102  %(19)%
MSR as % of serviced portfolio0.76 %0.75 %0.94 %0.96 %0.88 %0.01  (0.12) 






Umpqua Reports Second Quarter 2020 Results
July 22, 2020
Page 21

Umpqua Holdings Corporation
Residential Mortgage Banking Activity
(Unaudited)
Six Months Ended% Change
(Dollars in thousands)Jun 30, 2020Jun 30, 2019Year over Year
Residential mortgage banking revenue:
Origination and sale$126,128  $37,524  236 %
Servicing17,413  21,860  (20)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(10,371) (13,336) (22)%
Changes due to valuation inputs or assumptions(31,753) (25,288) 26 %
Total$101,417  $20,760  389 %
Closed loan volume:
Portfolio$528,576  $800,490  (34)%
For-sale2,974,279  1,185,240  151 %
Total$3,502,855  $1,985,730  76 %
Gain on sale margin:
Based on for-sale volume4.24 %3.17 %1.07  
Residential mortgage servicing rights:
Balance, beginning of period$115,010  $169,025  (32)%
Additions for new MSR capitalized23,470  9,379  150 %
Changes in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(10,371) (13,336) (22)%
Changes due to valuation inputs or assumptions(31,753) (25,288) 26 %
Balance, end of period$96,356  $139,780  (31)%



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